Tax settlement is a very complicated thing. You have to deal with the IRS and other tax authorities which are not always willing to settle your case as quickly and easily as possible. So, before paying a huge amount of money in taxes, you should consider all your options carefully. Here we have mentioned some of the best options that you can consider before paying a hefty amount as a tax burden.
So, here we have mentioned some of the best options that you can consider before paying a hefty amount as a tax burden.
1. Instalment Agreement and Voluntary Offer In Compromise (OIC)
· Instalment Agreement:
You get the chances of working out with the IRS on a payment plan in case you do not have enough money to pay off your tax debt in full amount.
· Voluntary Offer In Compromise (OIC):
If you are unable to pay off your tax debt, then this option is for you as it gives an opportunity for the IRS to settle your case at lower than original amount. This can happen if they agree on a certain percentage of reduction from what they originally claimed from which will be used as settlement amount towards paying off all outstanding balances.
2. Tax Lien Withdrawal/Subordination (TLW/SUB):
If you do not want a lien against your property, then you should focus on finding a way out of it. The most common way is by getting the tax lien withdrawn or subordinated. A tax lien is a legal claim against your property that can be assigned by the IRS to collect payment for back taxes due on time filed with the IRS. However, there are ways in which these can be removed from the owner’s property without going through an expensive legal process like bankruptcy or foreclosure proceedings.
3. Penalty Abatement
It is an old concept which helps in removing penalties from late filing and late payment when this happens due to some special condition or circumstance beyond work control.
If you have any doubt, then you can contact your local IRS office to learn more. The IRS provides support to taxpayers and their representatives across the country through various channels such as telephone, email or snail mail. You can also visit their website for more information about their services on different issues related to tax issues such as filing taxes late or missing a due date but still paying the amount of taxes owed by them in full.